UK-based research firm Screen Digest has stated in a new report that the PlayStation 3 still has what it takes to win out in the current console war, and has also gone on to question the potential of rival formats Xbox 360 and Wii.

Dwelling on the Xbox 360’s target market, Screen Digest points out that Microsoft’s efforts to broaden its reach, with titles such as Viva Pinata, have met with limited success. Add to this the fact that Microsoft is still enjoying little success in the Asian markets, and the firm paints a gloomy picture for the machine.

“A scratching of heads has started over questions concerning the long term viability of the platform in some territories,” the report stated. “With the UK underpinning European performance and without year-on-year sales improving across the rest of the region, the platform could be in jeopardy on a global basis.”

And despite the towering success currently being enjoyed by Nintendo’s Wii, Screen Digest suggests: “The Wii's target market could be saturated more quickly than its competitors as the technology looks increasingly tired by comparison.”

The firm goes on to claim that: “Most publishers’ European management teams feel that the PS3 will win-out by the end of the current console cycle, especially in Europe where the brand still appears to be impregnable.”

Screen Digest added that it expects a PS3 price drop later this year. “This is certainly what is needed to boost sales,” the report concluded.